Intel Documents ‘Conflict-Free’ Minerals Claim

Gold-laden pebbles, fresh from the Chien Mechant Mine, are crushed into silt in preparation for gold panning in the Lubona Village, Democratic Republic of Congo.

Peyser/RESOLVE

Some tech companies seem to be struggling with new reporting requirements about whether their products contain “conflict minerals” from mines blamed for fueling violence in war-torn regions of Africa. Not Intel.

The Silicon Valley chip giant, which has already declared that its microprocessors are now conflict-free, on Thursday bolstered that claim in a lengthy report filed with the Securities and Exchange Commission. Intel is the first company to submit an audited report, among just a handful to file reports ahead of a June 2 deadline.

Ernst & Young, which audits Intel’s financial reports, examined the company’s procedures for conducting due diligence about its supply chain. The firm did not express an opinion about whether Intel’s chips are conflict-free.

The reporting requirements, part of the 2010 Dodd-Frank Act, relate to products that use tin, gold, tantalum and tungsten. They stem from an effort to cut off money flowing to violent militia groups in and around the Democratic Republic of the Congo, groups that in some cases order mining of such materials at gunpoint.

Brian Krzanich, named Intel’s chief executive a year ago, has made attaining conflict-free status a highly visible corporate priority. It recently released a video to drive awareness about the problem, directed by the prominent documentary maker Paul Freedman.

Figuring out where materials used in manufacturing chips or other products is not easy, involving complex relationships between mines, middlemen and smelters. Intel’s report says it has visited more than 85 smelters and refiners in 21 countries since 2009.

Based on those interactions, and designations by other groups working on the issue, Intel said it can certify that its microprocessors are conflict free. So are related products called chip sets, which connect microprocessors to other parts of a system, the company said in the report.

Some other categories of products Intel sells that did not come from its own factories were classified as “undeterminable” as far a conflict minerals are concerned.

“From ultra-mobile and wearable devices to cloud computing and security, the technology universe is changing dramatically,” Krzanich said in a statement issued Thursday. “During this unprecedented industry transformation, we remain as committed to leadership in corporate responsibility as we do to innovation in our products.”